Chinese gold purchases.

[william the wie]

They are increasing so where does the money come from to maintain the housing bubble? At the last count I saw, a minimum of eight ghost cities had been verified from orbit in China. All of its economic growth for several years has been in construction. So if money is diverted from making unneeded and often unusable buildings to building private gold hordes what happens to the housing bubble?

 

[Trajan]

probably just build more when they start to crumble or pay/finance people to fix them......in their command economy, they will put out whatever #'s they think they need to to hold on to power. the malls and office bldgs that are empty is 'growth', .....I have a feeling when they fall and they will eventually we will find out those 9 and 10% gdps were all bunk, by half in real terms.

 

[Toro]

They are increasing so where does the money come from to maintain the housing bubble? At the last count I saw, a minimum of eight ghost cities had been verified from orbit in China. All of its economic growth for several years has been in construction. So if money is diverted from making unneeded and often unusable buildings to building private gold hordes what happens to the housing bubble?

Same thing that happens to all housing bubbles - it ends badly.

 

[idb]

It'll all become clear in China's end of year financial statement I'm sure.

It'll list the USA as an asset - not a particularly high value one but an asset of China's nevertheless.

 

[william the wie]

This is going to get rough.